Making Health Insurance Work for Consumers
Healthcare in
The nature of insurance is to protect against unforeseen and expensive problems. However, today, health insurance also covers routine care, such as essential check-ups that are neither unforeseen nor bank-breaking. This would be akin to expecting your auto insurance to cover oil changes you know are coming.
Because a significant part of the insurance cost is paid by their employer, most consumers don't even know the total price of their healthcare. Combined with the growth of the scope of health insurance, there is little market pressure on healthcare providers to control their costs, even for routine services.
Health insurance and employment were not always intimately tied. The connection has grown due to legislation and regulations that facilitated health insurance expansion beyond covering catastrophic events.
The first health insurance program in
In 1932, a collection of hospitals in
Other insurance plans, such as prepaid group practice in 1929 (later to become Health Maintenance Organizations) and
The following year, the
In 1965, employment-based health insurance had become so ubiquitous that
In 2016, for the first time, the government went beyond incentivizing employer-provided health insurance or filling in gaps and fully embraced the system. The Affordable Care Act mandated employer-based health insurance for businesses with 50 or more full-time employees.
From the first health insurance program at
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